Do NatWest 2 & 5 year fixed rate increase point to further mortgage rate rises?
The cost of taking out a mortgage from its core fixed-term range with NatWest may have increased, but does this point to a mortgage rate increase across the board?
Recent indications from the market since mid-September point to a number of lenders opting to increase the rate of their 2 and 5 year fixed term mortgage products. However, not all lenders have jumped on the same bandwagon and have resisted reacting in order to remain as competitive as possible. Which is good news if you are seeking a mortgage or remortgage today.
Swap rates may have increased but have yet to take their toll on the majority of the market. As a rise in the base rate from the Bank of England is expected to be announced in the not too distant future, the cost of swap rates has jumped, but only a handful of lenders have responded thus far.
This does not mean that the majority of lenders will continue to absorb a rise in their own costs. At some point, the market trend will swing and there will be an increase in all rates.
The advice from Deal Direct would be to act now.
Mortgages have never been so affordable but the indications are that the record-low rates we have seen may soon be gone for good.
To source a low-rate mortgage or remortgage product, speak with one of our experts here at Deal Direct.
Click below for an instant quote or call 0800 048 8828.
